Which of the Following Are NOT Ways Risk Management Can

question 15

Multiple Choice

Which of the following are NOT ways risk management can be used to increase the value of a firm?

• A)Risk management can help a firm maintain its optimal capital budget.
• B)Risk management can reduce the expected costs of financial distress.
• C)Risk management can help firms minimize taxes.
• D)Risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments.

---

Definitions:

Maintenance Scheduling

The process of planning and organizing maintenance activities in advance, including inspections, repairs, and replacements, to ensure equipment operates efficiently and downtime is minimized.

Prognostic Software Profiles

Software tools that predict the future condition or failure of equipment and systems based on their current and historical operational data.

Spring Pin

A type of fastener used to secure two or more components together, made from sprung (elastic) steel allowing it to compress and then expand for a secure fit.

Zerk Fitting

A grease fitting used to deliver lubricant under pressure into a specific location, commonly found in mechanical systems like automotive suspensions.